The phrase "Trump Always Chickens Out" is gaining traction in the United Kingdom and the United States as Wall Street traders have coined the acronym “TACO” to describe a recurring market pattern tied to President Donald Trump’s actions. This pattern involves Trump announcing aggressive tariffs that disrupt financial markets, only to reverse or delay them shortly afterward, leading to sharp rebounds and short-term trading opportunities. The TACO strategy drew renewed focus after Trump declared 50% tariffs on European goods, causing markets to plummet on Friday, May 23. By the weekend, he backtracked, and stocks rebounded by Tuesday, May 27, reinforcing the TACO phenomenon. Analysts note that no previous U.S. president has spurred such speculative trading behavior. Economist Justin Wolfers highlighted the unique unpredictability of Trump’s policy reversals, which create volatility but also opportunities for traders. Robert Armstrong, who coined “TACO,” humorously remarked that acronyms are more memorable when they evoke something like lunch. The pattern has sparked discussions among investors, with TACO becoming a shorthand for navigating Trump’s erratic trade policy moves, blending economic analysis with a touch of market wit.
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